What Sparked Sunation Energy (SUNE) Shares To Surge Nearly 50% After Hours?

Sunation Energy Inc. (NASDAQ:SUNE) rose 49.35% in after-hours trading on Tuesday to $1.17, following the company's announcement that it had eliminated approximately $1.1 million in remaining long-term debt.

According to Benzinga Pro data, the stock closed the regular session at $0.78, down 14.24%.

Company Negotiates Settlement, Cuts Monthly Payments By $20,000

Sunation Energy reached an $800,000 lump-sum settlement to retire a promissory note from an April 2021 shareholder buyout agreement.

According to the solar energy provider, the settlement cut the principal obligation by about $335,000 and lowered monthly payments from $25,000 to roughly $5,000, providing $20,000 in monthly savings through the note's original 2031 maturity.

Management Cites Strategic Focus

Scott Maskin, CEO of Sunation Energy, said, “By eliminating this remaining legacy obligation, we have significantly reduced a total debt obligation, improved cash flow visibility, and enhanced our ability to focus on executing our strategic priorities.”

The debt settlement is part of broader balance sheet initiatives, including Series A warrant termination in June 2025 and final contingent value rights distribution in December 2025.

Trading Metrics, Technical Analysis

Sunation Energy has a market capitalization of $2.66 million, with a 52-week trading range of $0.68 to $382.50.

The stock of the New York–based company has a Relative Strength Index (RSI) of 25.61.

SUNE has faced a challenging 12 months, with its stock falling 99.78%. The steep decline underscores the significant challenges the company has experienced and investors should approach the stock with caution in this volatile market.

Benzinga's Edge Stock Rankings indicate that SUNE has a negative price trend across all time frames.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.